AUDUSD Forecast – Australian dollar stabilizes

AUD/USD Forecast Video for 27.06.23

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has stabilized a bit during the Monday session, after spending the last couple of weeks falling. Ultimately, this comes down to the US dollar, as the Federal Reserve remains very tight. Ultimately, this is a market that I think given enough time will probably have a bit of a bounce, but we don’t know whether or not that will stick. After the last couple of weeks, it’s obvious that the volatility in this pair will end up being a massive issue.

When you look at the chart, you can see that the market had previously been in a rather tight consolidation between the 0.68 level and the 0.66 level. However, we have since plunged below the bottom, and above the top, showing just how much noise there is in this market overall. Ultimately, this is a market that will continue to be very noisy, so it’s difficult to trade with any type of serious confidence. After all, the market could end up being just as wild over the next couple of weeks. There seems to be a lot of concerns when it comes to global growth, that always causes a bit of trouble when it comes to the Australian dollar.

Furthermore, you need to pay close attention to the Chinese economy, because the Australian dollar is so heavily influenced by it. Ultimately, the market continues to be extraordinarily noisy, so you have to be very cautious with your position sizing as you can find yourself in a lot of trouble rather quickly on the wrong side of the trade. With this, it’s very likely that we continue to see a lot of questions asked, but ultimately this is a situation that will continue to be very difficult, so quite frankly I don’t like trading this pair as much as others at the moment, but we are essentially in the middle of the blowoff top and the throw over on the support level. In other words, we are essentially in “no man’s land,” so you need to be cautious and quite frankly you would be better served finding more stable pairs to trade at this point in time.

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